CBS Will Pay $4.2 Million to Settle Lawsuit

CHICAGO — CBS Inc. has agreed to pay $4.2 million to settle a lawsuit alleging that it conspired to fix record and tape prices, according to court documents.

United National Records Inc. of Gary, Ind., filed suit in 1982 charging that CBS and 12 other record companies conspired to fix prices on records and tapes since 1971, said Granvil I. Specks, a lawyer representing United National.

Although CBS denied “all charges of wrongdoing and disclaims any wrongdoing or liability,” the company agreed to the arrangement “to avoid the expense, burdens and distractions which would be involved in protracted litigation,” according to documents filed in U.S. District Court.

“Our official corporate response is no comment,” Richard Wien, director of corporate information for CBS in New York, said Friday.

The suit contended that CBS and the other companies artificially inflated prices and “policed adherence” to their alleged price-fixing conspiracy, Specks said.

United National alleged in the suit that the record companies violated federal trade laws by conspiring to “fix, raise, maintain and stabilize” the prices of tapes and records sold nationwide.

The suit was expanded in 1983 to represent individuals or companies that purchased tapes or records for resale between Jan. 1, 1971, and Dec. 31, 1982.